Tech Layoffs Continue: Snap Cuts 1,000 Jobs, Citing ‘Rapid Advancements’ in AI
Snap Inc., the parent company of Snapchat, has cut approximately 1,000 jobs, citing 'rapid advancements' in AI as a key factor. The layoffs represent about 16% of its global workforce and are expected to reduce the company's annualized cost base by over $500 million by 2026.
Snap Inc. is laying off around 1,000 employees, about 16% of its workforce, due to increased reliance on AI. The company's CEO, Evan Spiegel, stated that AI has enabled teams to reduce repetitive work and improve efficiency. More than 65% of new code at Snap is now generated by AI, and automated tools handle over 1 million support questions monthly. The restructuring is expected to save over $500 million by 2026 and is projected to lead to 'net-income profitability'. Snap's stock rose 6-9% in early trading following the announcement. The company estimates Q1 sales of $1.53 billion, up 12% year-on-year, and adjusted EBITDA of $233 million. This move follows similar layoffs in the tech industry, with companies like Oracle, Meta, and Amazon citing AI as a factor.
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